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GBP/USD Seems Primed For More Gains Above 1.2800

Key Highlights

  • GBP/USD is eyeing more gains above the 1.2750 level.
  • A major bullish flag is forming with resistance near 1.2725 on the 4-hour chart.
  • EUR/USD is gaining bullish momentum above the 1.0980 zone.
  • Oil prices could gain pace for a move toward the $78 level.

 

GBP/USD Technical Analysis

The British Pound formed a base above the 1.2600 zone against the US Dollar. GBP/USD climbed higher above the 1.2650 level to set the pace for more gains.

Looking at the 4-hour chart, the pair settled above the 1.2650 level, the 100 simple moving average (red, 4 hours), and the 200 simple moving average (green, 4 hours).

The pair is now following a major bullish flag with resistance near 1.2725 on the same chart. If the bulls push the pair above the flag resistance, there could be a sharp increase. The next key resistance is near the 1.2800 level.

A close above the 1.2800 zone could open the doors for more upsides. The next stop for the bulls might be 1.2850. Any more gains might call for a drift toward the 1.2880 level.

If there is a downside correction, the pair might find bids near the 1.2650 level. The next major support is 1.2600, below which the pair might decline and test 1.2540. Any more losses might send the pair toward the 1.2400 support.

Looking at EUR/USD, the pair is trading in a positive zone and the bulls could soon aim for a move toward the 1.1200 zone.

Economic Releases

  • Richmond Fed Manufacturing Index for Dec 2023 - Forecast -7, versus -5 previous.